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BEMA Convention 2019 - Snack Industry Update

BEMA
June 21, 2019

BEMA Convention 2019 - Snack Industry Update

Rob Sarlls of Wyandot Snacks provides an update on the Snack Industry in 2019 at BEMA Convention 2019

BEMA

June 21, 2019
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Transcript

  1. The New and Improved Snack Industry – Drivers and Future

    Opportunities Rob Sarlls Wyandot Snacks June 21, 2019
  2. 2 Agenda I. Who is Your Customer TODAY? – Demographics

    and Changing Lifestyles II. The Better For You Revolution – Winners and Losers III. What’s In Store for the Future?
  3. 3 Who Am I? Rob Sarlls Bio

  4. 4 Demographics Millennials Millennials Millennials ➢ 73 million Americans between

    22-37 years old ➢ 40% are People of Color ➢Biggest global spenders as of 2020 ➢Big on Customization, Individualization, and Innovation; Want Flexible “Everything” ➢High Social, Cultural, Environmental, Community Consciousness
  5. 5 Demographics Millennials Millennials Millennials ➢Arrested Development – far behind

    in marriage, homeownership, children ➢58% snack 4+ times a day ➢12% are vegetarian ➢The Ultimate Capitalists – They “Vote” With Their Dollars
  6. 6 Demographics Generation Z, or iGeneration ➢ Born from 1995

    to 2010 ➢ 30% of world’s 7.5 Billion Population ➢ Will dictate 40% of consumer spending in early 2020s ➢ 48% of US’ Gen Z people of color ➢ Digital Everything – addicted to phones, screens – 92% smartphone ownership - 5 hours per day screen time ➢ Into auto-replenishment, home delivery, “plant-forward” diets
  7. 7 Everyone’s Changing Lifestyles How We Live Changes How We

    Eat ➢ Fewer Sit-Down Dinners – more Grazing • 86% of Americans have replaced one meal with a snack • 94% of Americans snack daily ➢ Fewer Nuclear Family Households (less marriage, more single households, single parents) ➢ High-paced Lifestyles; Multitaskers ➢ Greater Ethnic Diversity ➢ People Pay Up for Quality, Novelty, Functionality ➢ “Experiences” over Ownership
  8. 8 Broader Food Industry Food Industry Trends ➢ Increased organic,

    “natural,” non-GMO, vegan, “free from” consumption ➢ Millennials and Gen Z’ers are value driven (greater private label acceptance, brand disloyal) – YET will pay up for “uniqueness” (especially if they can identify with a brand’s mission, social purpose)
  9. 9 Broader Food Industry (Cont’d) Food Industry Trends - Eating

    to Live (Better) ➢ Younger Consumers Eating to Avoid (Perceived or Real) Bad Effects ➢ Less “Processed” ➢ Few to None Artificial Ingredients ➢ Gluten Free, Wheat Free, Nut Free, Corn Free ➢ Functional Consumers Looking for Positive Benefits ➢ Improved Well-Being for Baby Boomers and Older ➢ Infant foods (biodynamics/regenerative farming)
  10. 10 Snack Industry Dynamics Snack Observations ➢ Salty Snack consumption

    growing 2-3X food consumption ➢ Better for You (“BFY”) snack consumption growing at 2-3X category growth ➢ Consumption of most innovative organic, and/or Non-GMO, and/or vegan, BFY snacks growing at 2-3x BFY snack growth ➢ Increased preference for RTE popcorn, extruded products, higher protein snacks (keto, paleo)
  11. 11 Snack Industry Dynamics Snack Industry Facts $20.4 $21.3 $23.0

    $23.7 $24.1 $25.0 2013 2014 2015 2016 2017 2018 US Snack Industry ($USB) 4% CAGR $5 Billion category growth in five years
  12. 12 Snack Industry Dynamics Global Plant Based Snack Market 2018

    $32 billion market 2028 $73 billion market Plant - Based Salty Snacks, $15.0 All Other Plant - Based Snacks, $17.0 Plant - Based Salty Snacks, $20.0 All Other Plant - Based Snacks, $52.8 130% Growth in 10 Years
  13. 13 Snack Industry Dynamics – Winners and Losers Winners Losers

    ➢ Strong Brands with Emotional Appeal – and Consumer “Trust” ➢ Clean “Pure” Ingredients ➢ Innovative Ingredients, Flavors, Packaging ➢ New Base Raw Materials – Ancient Grains, Exotics, Hemp, CBD, etc. ➢ Strong Social Media Presence ➢ Omni-Availability ➢ Fully Aware and Active in Social, Environmental, Community Causes ➢ Standing Still – Status Quo ➢ Focusing Solely on Price/Value Offering ➢ Not Having “Purpose” ➢ Ignoring Demographics (ethnicity, diversity, consumer shifts) ➢ Limited Product Selection ➢ Avoiding Efficiency Throughout Supply Chain
  14. 14 The Future of the Snack Industry? Snack Observations on

    the Future ➢ “Personalized” Nutrition ➢ DIY Personalized Snack Making?
  15. None